Hong Kong, March 2025 – Chinese technology giant Xiaomi Corp (1810.HK) has launched a major equity offering, aiming to raise up to $5.27 billion through a top-up placement. The move underscores the company’s ambitions to expand its presence in the competitive electric vehicle (EV) market while strengthening its foothold in consumer electronics and retail networks.
A Significant Capital Raise
According to a term sheet reviewed by Reuters, Xiaomi is offering 750 million Class B shares in the price range of HK$52.80 to HK$54.60 per share. This represents a 4.2% to 7.4% discount to the company’s last closing price of HK$57 on Monday. The offering marks one of the largest capital-raising deals in recent months, reflecting the company’s strategic efforts to bolster its financial strength for future growth.
The proceeds from the sale will be directed towards several key areas, including business expansion, investment in research and development (R&D), and general corporate purposes, as per the term sheet.
Xiaomi’s Growing Bet on EVs and Retail Expansion
Xiaomi, traditionally known for its smartphones and smart home devices, has aggressively ventured into the electric vehicle (EV) industry since launching its first EV model in 2024. This funding will provide a crucial boost to its EV operations, as the company aims to increase its vehicle deliveries target to 350,000 units in 2025, up from its previous forecast of 300,000.
The company’s ambitious retail expansion strategy is also in full swing. Xiaomi announced plans to enhance its brick-and-mortar presence across China, while setting a long-term goal to open 10,000 new Mi Home stores overseas within the next five years. This move aligns with the company’s strategy to strengthen brand visibility and engage more directly with global consumers.
Booming Chinese Equity Market
Xiaomi’s share sale is part of a broader trend where Chinese firms are aggressively tapping into equity capital markets. According to LSEG data, Chinese companies raised $16.8 billion in the first quarter of 2025 alone—more than double the amount raised during the same period last year. This surge is largely attributed to easing government scrutiny on the tech sector and a revival of investor confidence, particularly following the rise of disruptive AI firms such as DeepSeek.
This trend was further solidified earlier this month when BYD, a major EV competitor, successfully raised $5.59 billion in Hong Kong’s largest share sale in four years. The renewed investor enthusiasm signals a rebound for Chinese tech stocks after years of regulatory uncertainty.
Global Banks Steering the Deal
Xiaomi’s top-up placement is being managed by leading global investment banks, including Goldman Sachs, China International Capital Corporation (CICC), and JPMorgan. The strong backing from major financial institutions highlights the market’s confidence in Xiaomi’s growth trajectory and long-term vision.
The Road Ahead for Xiaomi
With this capital infusion, Xiaomi is well-positioned to scale its EV production, accelerate R&D, and expand its global retail footprint. The company’s strong fourth-quarter performance—reporting a nearly 50% surge in revenue—has already reinforced investor confidence.
While Xiaomi has yet to comment officially on the share placement, industry experts believe this fundraising effort will provide the company with the financial firepower necessary to challenge Tesla, BYD, and other EV giants in the rapidly evolving global market.
As Xiaomi continues to innovate across both consumer electronics and electric vehicles, this landmark capital raise could prove to be a defining moment in its journey toward becoming a dominant force in the next era of technology and mobility.
